Bank of America, Wells Fargo won't pay federal taxes

[cynatnite]

This tax season will be kind to Bank of America and Wells Fargo: It appears that neither bank will have to pay federal income taxes for 2009.

Bank of America probably won't pay federal taxes because it lost money in the U.S. for the year. Wells Fargo was profitable, but can write down its tax bill because of losses at Wachovia, which it rescued from a near collapse.

snip:
Bob McIntyre, at Citizens for Tax Justice, said he opposes the government giving corporations such a break.

"If you go out and try to make money and you don't do it, why should the government pay you for your losses?" McIntyre said. "It's as simple as that."

For 2009, Bank of America netted a $2.3 billion benefit related to income taxes, according to its annual report: It had a benefit of $3.6 billion from the federal government, and an expense of $1.3 billion that it paid to different state and foreign governments.

http://www.mcclatchydc.com/2010/03/26/91119/bank-of-america-wells-fargo-might.html

[Hannah Bell]

1. lost money - "in the U.S." & elsewhere?

gm was making money overseas when it was poor-mouthing here.

easy to rig financials that way.

[W_HAMILTON]

2. Too bad this doesn't get more publicity.

Not that our ignorant electorate would understand, anyway.

Because corporations can carry back and carry forward their losses, their average tax rate is much lower than that "horrible, free market destroying top corporate tax rate of 39%." I recently recall PepsiCo in particular having an average tax rate of ~25%, which is much lower than you would imagine for a company of their size and profitability.

[ProgressiveProfessor]

4. So can individuals in many cases

We just don't have the brain trust on our payrolls to figure out how to maximize things like that.

[Turbineguy]

3. "They'll only spend it foolishly anyway"

[jmowreader]

5. One of my former employers held a Bankruptcy Party every year

It was on April 15 at his house and we all looked forward to it. Bill loved to make fun of the IRS rules that caused very profitable corporations to look like paupers, so we would go to his house on Tax Day where he had a keg and a pig. We'd eat the pig and drink the keg while reading the corporate tax return. On our tax form, Total Income was always over $3 million, and Taxable Income was always under $3000. Which, he being a nice person, would divide equally among us all.

[Greyhound]

6. Typical. Most Americans fail to realize that when a company like say, Exxon/Mobile,

declares a $3B quarterly profit, that means they took in so much money that there was $3B that they couldn't spend or hide (meaning they actually made 2 - 3 times that much.

"It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning." - Henry Ford

[Pesci11]

7. Just lovely

The rich win again.

[Rex]

8. Well why should they? After Bush/Dick got away with murder

for 8 years these big companies finally wised up and now say, 'fuck you, force me'.